"PA Media Kemi Badenoch has said she is "really worried" that the UK might be forced to embark on a 1976-style bailout from the International Monetary Fund. The Conservative leader told BBC Newsnight that the UK could be forced to go "cap in hand" to the IMF unless the government delivers a plan for economic growth. She made her remarks as she offered to work with Sir Keir Starmer "in the national interest" to cut welfare spending."
"Asked what made her think the UK is heading towards the need for an IMF bailout, Badenoch said: "A lot of the indicators are pointing in that direction. "Many very well respected commentators and economists are saying this." A number of economists, mainly on the right, have in recent weeks raised the prospect of a version of the 1976 sterling crisis repeating itself. Other economists have dismissed this as hyperbole."
Concern exists that the UK might need an IMF bailout unless the government produces a credible plan for economic growth. Analysts note indicators pointing toward fiscal strain, with debate among economists over the likelihood of a 1976-style sterling crisis repeating. Calls for welfare cuts and growth to break a "doom loop" of rising taxes and precarious public finances are proposed alongside cross-party cooperation offers to reduce spending. Historical precedent from 1976 is cited to underscore potential political and economic consequences. Debate includes comparisons to past chancellors and differing views among economists; some see eerie parallels while others dismiss the threat.
Read at www.bbc.com
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